US Gold (NASDAQ:USAU) vs. Western Digital (NASDAQ:WDC) Financial Comparison

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US Gold (NASDAQ:USAU) and Western Digital (NASDAQ:WDC) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for US Gold and Western Digital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
US Gold 0 0 1 0 3.00
Western Digital 3 13 12 0 2.32

US Gold presently has a consensus price target of $3.00, suggesting a potential upside of 209.28%. Western Digital has a consensus price target of $59.71, suggesting a potential upside of 4.87%. Given US Gold’s stronger consensus rating and higher probable upside, analysts clearly believe US Gold is more favorable than Western Digital.

Dividends

Western Digital pays an annual dividend of $2.00 per share and has a dividend yield of 3.5%. US Gold does not pay a dividend. Western Digital pays out 52.5% of its earnings in the form of a dividend.

Volatility & Risk

US Gold has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Western Digital has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500.

Earnings and Valuation

This table compares US Gold and Western Digital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
US Gold N/A N/A -$8.05 million ($0.44) -2.20
Western Digital $16.57 billion 1.01 -$754.00 million $3.81 14.94

US Gold has higher earnings, but lower revenue than Western Digital. US Gold is trading at a lower price-to-earnings ratio than Western Digital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares US Gold and Western Digital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
US Gold N/A -100.90% -97.17%
Western Digital -4.55% 10.73% 4.15%

Insider and Institutional Ownership

1.6% of US Gold shares are owned by institutional investors. Comparatively, 84.2% of Western Digital shares are owned by institutional investors. 12.1% of US Gold shares are owned by insiders. Comparatively, 0.4% of Western Digital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Western Digital beats US Gold on 9 of the 15 factors compared between the two stocks.

About US Gold

U.S. Gold Corp. operates as a gold exploration and development company in the United States. It has a portfolio of development and exploration properties. The company's properties include the Copper King project, an advanced stage gold and copper exploration and development project located in southeast Wyoming; Keystone project, an exploration property on the Cortez Trend in Nevada; and the Gold Bar North project, a gold exploration property located in Eureka County, Nevada. The company is based in Elko, Nevada.

About Western Digital

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions worldwide. It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for computing devices, such as desktop and notebook PCs, security surveillance systems, gaming consoles, and set top boxes; flash-based embedded storage products for mobile phones, tablets, notebook PCs, and other portable and wearable devices, as well as automotive, IoT, industrial, and connected home applications; flash-based memory wafers; and embedded storage solutions and iNAND embedded flash products, such as multi-chip package solutions. The company also provides data center devices and solutions comprising enterprise helium hard drives; enterprise SSDs consisting of flash-based SSDs and software solutions for use in enterprise servers, online transactions, data analysis, and other enterprise applications; data center solutions, including HDDs and drive configurations for use in data storage systems and tiered storage models; system solutions that offer petabyte scalable capacity; and data storage platforms and systems. In addition, it offers client solution, such as external HDD storage products in mobile and desktop form; client SSDs; removable cards used in consumer devices comprising mobile phones, tablets, imaging systems, still cameras, action video cameras, and security surveillance systems; universal serial bus flash drives used in the computing and consumer markets; and wireless drive products for in-field back up of created content, as well as wireless streaming of high-definition movies, photos, music and documents to tablets, smartphones, and personal computers (PCs). The company sells its products under the HGST, SanDisk, and WD brands to original equipment manufacturers, distributors, resellers, cloud infrastructure players, and retailers. Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.

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